THE $700 BILLION BAILOUT:
SAVING THE RICH AND
LETTING THE POOR SINK
By: S.R. Shearer
September 28, 2008
"Someone who lacks independent
wealth has no claim to even the SMALLEST portion of food ..."
- David Ricardo,
One of the "originators" of
todayís system of capitalism,
and someone who called
himself a Christian
The rich are those who "...devour
widows' houses [and people's livelihoods], and for a pretense make a long
- Matt. 23:14
Michael Hudson, author of the book, Super-Imperialism,
calls the economic plan the administration is trying to implement a "$700
Billion Giveaway" to the rich. He writes:
"The bankstersí plan is to take Mr. Paulsonís $700 billion and RUN.
Itís not a Ďbailout of the financial systemí. Itís a giveaway - to insiders,
to sell out all their bad BETS. Companies across the board will
get rid of their bad mortgages, and also their bad car loans, furniture time
payments, credit-card loans, student loans - all the debts that any competent
actuary could have told them never could have been paid in the first place."
These bad loans are called "TOXIC loans" because they can only be
sold at a loss - A HUGE LOSS THAT CANNOT UNDER ANY CIRCUMSTANCES BE RECOUPED
IN THE FUTURE, DESPITE ALL THE TALK BY WALL STREET PUNDITS AND THE ADMINISTRATION
THAT SUCH A THING IS POSSIBLE.
This is the problem that Congress is not willing to come
out and face. Many of these loans are just plain fraudulent.
And they are being sold by crooks. Crooks who work for banks.
Crooks who use accounting fraud - such as the fraud that
led to the firing of Maurice Greenberg at A.I.G. and his
counterparts at Fannie Mae, Freddie Mac and other companies
engaging in Enron-type accounting. And one should be
very clear here, itís not so much those who have defaulted
on their mortgages, as it is those who "pushed" this "bad
paper" on these people - often using "bait and switch" tactics
- that are responsible for most of the bad mortgages.
[Please see our article, "Lies
and Damned Lies: Not Discerning the Truth;" please
also see our article, "Lies
and Deceit in the Service of the American New World Order
The fact is, there
is now a mathematical certainty insofar as a worldwide recession (and possibly
even a depression) is concerned. The economic system that Wall Street has
introduced to the American public - and the world at large - over the past
few decades is the same kind of "pension-fund capitalism" (or "peoplesí capitalism"
as it was called in Chile by the "Chicago Boys" working for General Pinochetís
murderous regime) - "Chicago Boys" (i.e., the disciples of Leo Strauss and
Alan Bloom of the University of Chicago) such as Elliott Abrams, Richard Armitage,
John R. Bolton, Richard Cheney, Seth Cropsey, Paula Dobriansky, Francis Fukuyama,
Bruce Jackson, Lewis Libby, Peter W. Rodman, Donald Rumsfeld, Randy Scheunemann,
Paul Wolfowitz, Dov S. Zakheim, Robert B. Zoellick, Patrick Clawson, Robert
Satloff, Michael Eisenstadt, Mortimer Zuckerman, Martin Peretz, Michael Ledeen,
Stephen Hadley, Norman Podhoretz, Midge Decter, Richard Perle, Douglas Feith,
Frank Gaffney, John Lehman, Gary Bauer, Abram Shulsky, William J. Bennett,
Ellen Bork, Robert Bork, Rudy Boschwitz, Jeb Bush, Eliot A. Cohen, Thomas
Donnelly, Steve Forbes, Aaron Friedberg, Reuel Marc Gerecht, Fred Ikle, Donald
Kagan, Jeane Kirkpatrick, Charles Krauthammer, William Kristol, Christopher
Maletz, Daniel McKivergan, Dan Quayle, Beton Michael Kaneb, Henry Rowen, Gary
Schmitt, George Weigel, R. James Woolsey, Vin Weber, etc.
And these are, naturally enough, the very
same people that Christians such as Paul Crouch, Jack Hayford, Charles Stanley,
the late D. James Kennedy, Tim LaHaye, the late John Wimber, Juan Carlos Ortiz,
C. Peter Wagner, Beverley LaHaye, Ern Baxter, Kenneth Copeland, Kenneth Hagin,
Oral Roberts, Pat Robertson, the late Jerry Falwell, Chuck Colson, Robert
Stearns, Mike Bickle, Reuven Doron, Che Ahn, Frank Hammond, Cindy Jacobs,
Bill Hamon, John Eckhardt, Bobbie Byerly, Dutch Sheets, Jim Goll, John Paul
Jackson, James Ryle, Frank Damazio, Ed Silvoso, Carlos Annacondia, Claudio
Freidzon, Roger Mitchell, the now "defrocked" Ted Haggart, the pedophile Paul
Cain (whose pedophilia the evangelical elites have been very careful to hide),
Chuck Pierce, Rick Joyner, Kingsley Fletcher, Jim Laffoon, Barbara Wentroble,
ad infinitum are in league with to "take the country (and the world)
back for Christ."
The promise made by the "Chicago Boys" and - ipso facto - their evangelical
allies is that if people consign their savings, pensions,
and IRAs to individuals who make much, much more money than
they do - and are much, much more greedy than they are -
they will be assured of riches in the future. [And this
is the kind of mentality that undergirds the American Church?
- God help us all! (Please see our article, "The
Neo-Conservatives: Exporting a Fake Christianity to the
Shores of Europe in the Interest of the American New World
Think about the stupidity of it all! - AMERICAN
WORKERS ARE SUPPOSED TO ENSURE A GOOD LIFE FOR THEMSELVES BY INVESTING THEIR
MONEY WITH THE VERY SAME "CORPORATE RAIDERS" WHO FIRE, LAY OFF, DOWNSIZE AND
OUTSOURCE THESE VERY SAME AMERICAN WORKERS. The trick is to persuade
employees to hand retirement funding over to financial managers whose idea
is to make money off the economy by extracting interest and dividends off
workers, homeowners and companies being bought on "debt leverage."
Hudson goes on to say:
"As Financial Times columnist Martin Wolf noted on Wednesday, Sept.
24, the problem is that the face value of mortgage loans and a raft of other
bad loans far exceeds current market prices or prices that are likely to be
realized this year, next year or the year after that. They are packaged into
what the financial press rightly calls Ďtoxicí. The bailout ... will [ultimately
fail] he writes, Ďbecause it can only deal with insolvency by buying bad assets
at far above their true value, thereby guaranteeing big losses for
taxpayers and providing an open-ended bail-out to the most irresponsible investorsí
... This is the key: if debts cannot be paid, then creditors must take losses."
What Hudson is saying here is, in the capitalist
system envisioned by the framers of the Constitution, if debts cannot be repaid,
itís the creditors who - after liquidation of the debtors assets - must take
the remaining loss.
This principle is enshrined in the U.S. Constitution - specifically, Chapters
7 and 11 of the Constitution. The rationale behind this thinking is to FORCE
investors to take the risk; if the risk pays off, the investor makes a profit;
if the risk fails, the investor takes the loss. This thinking also aimed
at ending the hideous institution of "debtor prisons" and "indentured servitude."
RISK BELONGS TO THE CREDITOR, NOT THE DEBTOR - and thatís the reason
behind rating borrowers as "good credit risks" or "bad credit risks."
This kind of thinking, as Hudson explains, is also enshrined in the Bible.
How you say? - through the device of the "Jubilee," a God-ordained
mechanism aimed at preventing the untoward accumulation of wealth - central
to todayís capitalist system - in Old Testament Israeli society. Youíve
never heard of this? - well, I'm not surprised! It's not something that
the elites of this world or their "toadies" in the Religious Right
would find it convenient to talk about too much.
In the Old Testament (in the Book of Leviticus) the land of Israel was
to be divided EQUALLY in perpetual allotments to its citizenry. Each
family was to receive a roughly equal share of the land. Now the Bible envisioned
that in the course of time, some would not do as well as others and, as
a result, would have to sell their land and their houses. But every fifty
years, the Bible established a "Year of Jubilee" in which everything
had to be restored to its original owner - even if the original owners had
been "irresponsible" in losing control over it:
"And ye shall hallow the fiftieth year, and proclaim liberty throughout
all the land unto all the inhabitants thereof: it shall be a jubilee (i.e.,
a time of rejoicing") unto you; and ye shall return every man unto
his possession ... (in other words, everyman in Israel would have his
former possessions returned to him).
"A jubilee shall that fiftieth year be unto you: ye shall not sow,
neither reap that which groweth of itself in it, nor gather the grapes
in it of thy vine undressed.
"In the year of this jubilee ye shall return every man unto his
"IN THE YEAR OF THE JUBILEE THE FIELD SHALL RETURN UNTO HIM OF
WHOM IT WAS BOUGHT, EVEN TO HIM TO WHOM THE POSSESSION OF THE LAND BELONGED
originally)." (Lev. 25:10-11, 13, 24)
This is hardly a system of things that would be approved today by Bank
of America and Wells Fargo, and by the "Captains of
Industry." How long do you suppose modern capitalism
would survive under this kind of system? [Please see our
article, "Capitalism and Christianity."]
WHO WILL BE SAVED, AND
WHO WILL BE LEFT TO DROWN?
The thought that creditors (i.e., the mavens of Wall Street)
should take a loss on their "financial bets" is anathema to the elites - and
thatís what the $700 billion bailout is all about. Hudson explains:
"As matters now stand, the $700 billion is to be used to finance this yearís
annual bonuses, this yearís million-dollar salaries and sales commission,
and to contribute yet more to the retirement funds for the golden parachutes
that financial managers have siphoned off to provide a safety net for themselves.
So we are back to the basic motto these days: ĎYou only have to make a
fortune once in a lifetimeí. Now is the time to make these fortunes as
big as theyíre going to get. Because itís all down hill from here."
There is, of course, talk by both Republican and Democratic leaders that
provisions have been made to prevent the rich from utilizing "golden parachutes"
and other such devices, but thatís all it is. The provisions being talked
about are as meaningless and empty as talk that the elites have only the
welfare of average Americans in mind insofar as the bailout is concerned.
All this lends a certain somber credence to the words of Honore de Balzac:
"Behind every great fortune there lies a great crime."
Hudson adds ominously,
"A bailout is designed to keep the boat afloat. But the existing Wall Street
boat crafted by the investment bankers seeking to unload their junk must [inevitably]
sink. THE QUESTION AS IT SINKS IS SIMPLY WHO WILL BE ABLE TO GRAB THE LIFEBOATS,
AND WHO DROWNS."
THERE IS A REASON WHY THE
"BAILOUT" WILL UTIMATELY FAIL
There is, naturally enough, a very good reason why the "bailout" will ultimately
fail - and thatís because there is NO way that real estate values
will, over the long run, rebound to their hyper-inflated prices of 2005-2006.
Every major real estate advisor on record has forecast a further drop of between
20 to 30 percent in property values over the coming twelve months. This is now
the standard forecast. It means that over and above the five million arrears
and foreclosures that Mr. Paulson has already acknowledged are on the books,
yet more families are to give up the fight by this time next year - throwing
ever more empty homes onto the market. The fact is, as Hudson says,
"Housing and commercial real estate already are so heavily mortgaged that
there is no real value left in them."
In other words, THERE IS NO WAY THE BANKS CAN MAKE MONEY ON THESE LOANS
UNLESS AND UNTIL THE PRICE OF HOUSES FALLS ANOTHER 20 - 30 PERCENT, AND PROBABLY
MORE THAN THAT.
People who buy into the real estate market today - even at todayís depressed
prices relative to the price of these homes in 2005 - 2006 - will ultimately
suffer a loss of 30 percent or more.
What the elites are trying to do is hide this fact from average Americans by
temporarily stalling this reality from manifesting itself while they get their
money out of the market (and we speak here not only of the real estate market,
but the stock market which is by now joined at the hip to the mortgage crisis)
prior to its inevitable and final crash. Thatís what the $700 billion bailout
is all about. Hudson writes:
"It is necessary, even inevitable, for the volume of debt to come down - not
up - to restore equilibrium. The economy was well on its way to preparing the
ground for this last week ... Such debt writes-offs are a precondition for writing
down Americaís mortgage debts to levels that are affordable."
But again, if the market were allowed to fall "naturally," and in the precipitous
fashion that it was doing, the elites would take the hit. In other words, prices
on housing in the United States must be allowed to sink another 20 - 30 percent
(and perhaps even more -this in addition to the price slump of some 30 percent
that homes have already suffered) before there will be a market for them again,
OR - put another way - before average Americans can once more
afford to begin buying homes.
Again, what the elites are trying to do is give the illusion that the real
estate market (and Wall Street) has stabilized, and itís safe for average Americans
to come back in; when they do, the elites will swoop in, grab the money - that
in addition to the $700 billion - and run.
The increase in the amount of money that homeowners are being forced to
spend on their mortgage payments has had a devastating effect on average
Americans; they have had to spend more and more of their incomes on their
monthly mortgage payments, and less and less money for the purchase of other
"outlays" such as car payments, clothing, vacations, and other goods and
services. This alone has had the effect of making a recession all but inevitable,
because as sales of these goods and services in the larger economy have
stalled, jobs have been lost and unemployment has risen.
This reality did not "hit" average American homeowners until recently because
they have been supplementing their income by leveraging the equity in their
homes. But now that this is no longer possible, the dam is beginning to
burst insofar as the so-called "real economy" is concerned.
Moreover, as the purchasing power of average Americans has been reduced,
revenues generated from sales taxes have been correspondingly reduced, leading
to growing layoffs in the so-called "public sector" of the economy.
A "cognitive dissonance" has been reached: no matter which way housing
prices go - up or down - a recession is inevitable: If housing prices stabilize
and resume moving upward (which is what the elites are trying to accomplish
at least temporarily with their bailout), the amount of money that can be
spent by consumers in the "real economy" must shrink - leading to more job
losses; but if housing prices continue to fall, pension funds, IRAs, etc.
(all of which have been pegged to the hyper-inflated value in the real estate
market) lose their value, stripping people of their life-savings. Either
way, "average Americans" are going to "take it in the shorts." Inevitably,
of course, real estate values will continue to decline - and some analysts
say that the decline of real estate values may very well continue for the
next ten years.
The elites, however, are dead-set against suffering the same disaster that
average Americans are fated to suffer. Hudson continues:
"Mr. Paulsonís plan is to fight against this tide [i.e., the inevitability
of a steep fall in housing prices and hence a steep loss on the value of the
equities the elites hold]. He [Paulson] wants Wall Street to keep on raking
in money at the expense of the economy at large. These are the big banks who
lobbied Congress to appoint de-regulators, the banks whose officers paid themselves
enormous bonuses and gave themselves enormous golden parachutes."
In other words, Mr. Paulson wants Congress to suspend the "Law of Supply and
Demand" for the benefit of the elites he serves; he wants to give the elites
a chance to save themselves from the fate that ordinary Americans are going
to be forced to suffer. Hudson continues:
"This legislation is a giveaway of unprecedented magnitude - one that would
cripple the Ďreal economyí for as far as the eye can see."
A "SILVER LINING" FOR AMERICANS; A
NIGHTMARE FOR THE REST OF THE WORLD.
There is, however, a "silver lining" for many - though certainly not all -
average Americans, and it is this: The elites have an abiding fear of the "masses
in the streets." There is nothing so much as the thought that they could suffer
the wrath of what they call "the mob" that sends shivers up their spines; the
nightmare that they could suffer the fate that the French and Russian elites
suffered at the hands of their enraged populations 250 years ago and 90 years
ago respectively. It is a nightmare that is permanently etched into their brains.
As a result, while the elites cannot save the great majority
of "average Americans" from the economic catastrophe that is
about to overtake them, they can still save a lot of them, and
mitigate the fate of many millions more. And how is that?† By
squeezing most of the $700 billion in bailout funds out of the
rest of the world. They can do that by putting their TRIBUTE
SYSTEM into overdrive and wringing the money out
of the EU, Japan, and the rest of the world. [Please see Part
3 of Chapter XII of the NEW ANTIPAS PAPERS, "U.S.
Economic Supremacy," for an explanation of the
functioning of Americaís tribute system.]
GENERATING A MILITARY CRISIS &
IMPRISONING "ENEMIES OF THE STATE"
But as we said in our last "main article" - "We Have Reached
a Crisis Point" - squeezing that much money out of Americaís
slave-states will take a massive increase in the size of the
U.S. military, which in itself would necessitate some kind of
"military crisis" that would scare the hell out of Americans
- something akin to another 9-11, only much worse! And make
no mistake about it: The elites are perfectly capable of "generating"
such a crisis. [Please see our articles, "Conspiracy
Theories," "MK-Ultra: The
Search for the Manchurian Candidate" and "Now
Is the Time to Do Something; It May Be too Late Tomorrow."]
For those Americans whom the elites are not able to save, thereís
always prison and the fact that the U.S. now possesses the ability
to "disappear" people under color of the so-called "War on Terror."
[Please see our articles, "The
Birth of a Christian Police-State," "The
Watchers Are Watching You," "I
Was in Prison and Ye Visited Me Not" and "The
Utility of Police Brutality in the Eliteís War against the Poor."]
More about all this in upcoming articles.
Brothers and sisters - all those who live OUTSIDE the borders
of the United States - God is raising up a TESTIMONY to His
holy Name in these "last days." If you want to be a part of this great work,
NOTE: Please take the time to read the attached article;
then, if you wish, sign up at the place designated at the end of the article.
Those of you who continue to reside WITHIN the borders of
the United States and who want to involve themselves in ALIYA
In addition, we desperately need your financial help. The giving
to the ministry for this month has been very miniscule - and so much so
that we have had to let our telephone service go in order to keep the website
up and working. We will continue on no matter what, but if you can help
and take some of the pressure off of us, please -
Remember the Word of God:
"IF WE HAVE SOWN UNTO YOU SPIRITUAL THINGS, IS IT A GREAT THING
IF WE SHALL REAP YOUR CARNAL (MATERIAL) THINGS?" (1 Cor. 9:11)
Finally, if you have not as yet ordered your FREE DVD, "Greed
Is Good," we encourage you to do so now -
God bless you all!
We need your help to spread the word concerning Antipas Ministries and the
eschatological viewpoint it represents; WE NEED YOUR
HELP BECAUSE WE DO NOT "LINK" WITH OTHER SO-CALLED "CHRISTIAN"
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"The Third World
as a Model for the New World Order," Inside
the American New World Order System" and "The
American Empire: The Corporate / Pentagon / CIA / Missionary
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